USD: US Consumer Confidence Rebounds in May
In May, the US Consumer Confidence data showed a reading of 102.0, a notable increase from the 97.5 recorded in April. Additionally, consumer expectations regarding jobs, business prospects, and income rose to 74.6, up from 68.8 in April. The release of this positive data led to a strengthening of the US Dollar in the market.
EURUSD is moving in an Ascending channel and the market has rebounded from the higher low area of the channel
Consumer confidence in the United States saw a notable increase in May after experiencing three consecutive months of decline, according to data released by The Conference Board, a prominent business research group. The consumer confidence index, which serves as a gauge of both Americans’ assessment of current economic conditions and their outlook for the next six months, rose to 102 from 97.5 in April. Analysts had anticipated a further decline in the index.
Specifically, the measure of Americans’ short-term expectations for income, business conditions, and the job market climbed to 74.6 in May, showing improvement from a dismal 68.8 recorded in April. It’s worth noting that a reading below 80 can indicate the possibility of a recession in the near future.
Additionally, consumers’ perception of current economic conditions also showed an uptick, with the index rising to 143.1 in May from 140.6 in April. Despite this improvement in consumer sentiment, concerns persist regarding inflation and interest rates among Americans.
USD: US CB Consumer Confidence Index Climbs to 102.00 in May
In May, US Consumer Confidence rose to 102.0 from 97.5 in April. People felt more optimistic about jobs, business, and income, with expectations jumping to 74.6 from 68.8 in April. The US Dollar went up after this news came out.
In May, consumer sentiment in the United States experienced an improvement, as indicated by the Conference Board’s Consumer Confidence Index, which rose to 102.00 from 97.5 in April. The Expectations Index, reflecting consumers’ short-term outlook, also saw a notable increase, climbing to 74.6 from 68.8 during the same period.
USD Index Market price is moving in Ascending channel and market has reached higher low area of the channel
Dana M. Peterson, Chief Economist at the Conference Board, highlighted the survey’s findings, noting that while consumers’ assessment of current business conditions was slightly less positive than the previous month, the robust labor market continued to buoy overall consumer sentiment. Specifically, views of current labor market conditions improved in May, with fewer respondents indicating that jobs were hard to find, which offset a slight decline in those reporting that jobs were plentiful.
USD: US Consumer Confidence Increases in May
The US Consumer Confidence data for the May month came at 102.0 versus 97.5 printed in the April month, Consumer expectations of Jobs, Business and income increased to 74.6 from 68.8 in the April month . The US Dollar moved higher after the data published today.
New York, May 28, 2024 /PRNewswire/ — According to the latest report by The Conference Board, the Consumer Confidence Index® in the United States rose in May to 102.0 (1985=100) from 97.5 in April, with a slight upward revision. The Present Situation Index, reflecting consumers’ assessment of current business and labor market conditions, increased to 143.1 (1985=100) in May from 140.6 in April.
Moreover, the Expectations Index, which reflects consumers’ short-term outlook for income, business, and labor market conditions, also saw an improvement, rising to 74.6 (1985=100) from 68.8 last month. However, it’s noteworthy that the Expectations Index remained below 80 for the fourth consecutive month, a level typically signaling a recession ahead.
Dana M. Peterson, Chief Economist at The Conference Board, commented on the findings, noting the improvement in confidence after three consecutive months of decline. She highlighted that while consumers’ assessment of current business conditions was slightly less positive than the previous month, the robust labor market continued to support overall consumer sentiment. Views of current labor market conditions improved in May, with fewer respondents indicating that jobs were “hard to get,” which outweighed a slight decline in those reporting that jobs were “plentiful.” Looking ahead, fewer consumers expected deterioration in future business conditions, job availability, and income, resulting in an increase in the Expectations Index. Nonetheless, the overall confidence gauge remained within a relatively narrow range it has been hovering in for more than two years.
Peterson further explained that compared to the previous month, confidence improved among consumers of all age groups. Notably, those making over $100K expressed the largest rise in confidence. Additionally, she highlighted that consumers cited prices, especially for food and groceries, as having the greatest impact on their view of the U.S. economy. The report also indicated a possible resurgence in recession concerns, with more consumers believing a recession is “somewhat likely” or “very likely” in the next 12 months.
On a six-month moving average basis, purchasing plans for homes remained unchanged in May at their lowest level since August 2012. While still relatively depressed, buying plans for autos rose slightly for a second month, and buying plans for most big-ticket appliances increased for the first time in several months. Present Situation: Consumers’ assessment of current business conditions was slightly less positive in May. Expectations Six Months Hence: Consumers were less pessimistic about the short-term business conditions outlook in May. Assessment of Family Finances and Recession Risk: Consumers’ assessment of their Family’s Current Financial Situation was less positive in May. Consumers were also slightly less optimistic about their Family’s Financial Situation going forward. The report also highlighted the rise in consumers’ Perceived Likelihood of a US Recession over the Next 12 Months for the second consecutive month in May.
USDJPY is moving in the Box pattern and the market has rebounded from the support area of the pattern
The monthly Consumer Confidence Survey®, based on an online sample, is conducted for The Conference Board by Toluna, a technology company that delivers real-time consumer insights and market research through its innovative technology, expertise, and panel of over 36 million consumers. The cutoff date for the preliminary results was May 21.
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